The 44-year-old former defender appeared for Celta between 2001 and 2005, and was appointed as their coach last month after Luis Enrique departed to take over at Barcelona.
At a press conference on Monday, Berizzo outlined his pleasure at making a return to Galicia, and revealed that the decision to take up Celta's offer was an easy one.
"I am very happy to be back here and see familiar faces that have always treated me well," he said.
"I'm willing to help and command a club that gave me a lot and to whom I owe a lot.
"Deciding on Celta I think took me between three and four minutes.
"In the streets I see an excited crowd, I identified with the team. A key is connecting with people."
Berizzo takes over at Celta following a successful spell in charge of Chilean outfit O'Higgins.
Celta finished ninth in La Liga last season, their highest placing since the 2005-06 campaign.
